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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 14756 / December 13, 1995
SECURITIES AND EXCHANGE COMMISSION v. CERTAIN PURCHASERS OF THE
COMMON STOCK OF CBI INDUSTRIES, INC., U.S. District Court for the
Southern District of New York, 95 Civ. 9651 (MP) (S.D.N.Y. 1995)
The Securities and Exchange Commission today announced that
on December 12, 1995, the Honorable Milton Pollack entered a
Preliminary Injunction Freezing Assets and Order Granting Other
Relief (the "Order"), along with Findings of Fact and Conclusions
of Law, against certain unknown purchasers of the common stock of
CBI Industries, Inc. The Order, which supersedes a prior
temporary restraining order issued by the Court, continues to
freeze the defendants' shares of CBI stock and any proceeds of
sales of such stock. It also requires the defendants to identify
themselves. To date, the Commission has frozen securities worth
over $2,000,000.
As previously announced, the Commission filed a Complaint
against the defendants on November 14, 1995. In its Complaint,
the Commission alleged that the defendants violated Sections
10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules
10b-5 and 14e-3 thereunder in connection with their highly
profitable purchases of CBI common stock through the offices of
foreign financial institutions just days before the first public
announcement that Praxair, Inc. intended to commence a takeover
of CBI. On November 14, 1995, the Court granted the Commission's
application for emergency relief which included an asset freeze
to prevent the defendants from removing the common stock of CBI
and the proceeds of any sales of such stock beyond the
jurisdiction of the Court. On November 22, 1995, The Honorable
Milton Pollack extended the temporary restraining order freezing
the defendants' assets until December 13.
For additional information, see Litigation Release No.
14721.